Church Brothers Collision Repair

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Church Brothers Collision Repair

• Summary of a
  Waterborne Conversion at a 6 location MSO

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Who is Church Brothers Collision Repair?

• Family Owned Collision Repair Company since 1929
  (founded by brothers Noel and Clem
  Church)
• Repair and Paint approximately 8,000 Cars and
  Light Trucks Annually
• 6 Indianapolis area locations
• 145 Employees

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What process did we modify to reduce pollution
emissions?

• Converted Solvent Basecoat System to a Waterborne
  Basecoat System for all vehicle refinishing
  processes.
• Between Dec. 2007 and Nov. of 2008 Church
  Brothers converted all 6 locations.
• Solvent Refinishing Systems exist in 99 of all
  Collision Repair shops today, with the exception
  of special containment areas on the South Coast
  of California, where a mandate took effect in
  2009 .

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Why Change to Waterborne?

• Contractual Arrangement with Dupont (Spies
  Hecker) had ended.
• Decision to change based on following
• Wanted to be 1st MSO in Indiana to convert to
  waterborne
• Right thing for environment and employees
• Marketing Benefits
• Anticipated we would get more technical
  assistance if we were significantly ahead of any
  mandate
• Improved color match as OEMs moved to water
• Using less material has many benefits
• Improved Productivity ?
• Lower cost total cost ?

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Water vs. Solvent Whats in the Can
Solvent Basecoat
Waterborne Basecoat
Average 6 VOCs per pound
Average 3.5 VOCs per pound
70 Water
85 Organic Solvents
10 Organic Solvents
20 Pigment, metallic and pearlescent particles
15 Pigment, metallic and pearlescent particles
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Annual Environmental
Impact

• Church Brothers Waterborne Transition
• 28 Less VOC Emissions
• Equals
• 15,000 Fewer VOCs Emitted Each Year

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Legislation Mandating the Change to
Waterborne?Regions Air Districts Impacted
North America View
2010 Timing
Canada
2012 2015 Est. Timing
Lake Michigan Air Directors Consortium (LADCO)
IL, MI, IN, WI
2009 2011 Est. Timing
Est. 50 of the US market on WBC in 6-7 years
California
2012 2015 Est. Timing
Ozone Transportation Commission (OTC) CT, DE,
DC, ME, MD, MA, NH, NJ, NY, PA, RI, VT, VA
99 U. S. Repair Shops still use a Solvent
Basecoat Refinishing System
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• OEM Adoption of Waterborne Basecoat

40 of OEMs in U.S. use Water60 of OEMs in
Europe use Water In General Cars made in
Germany, Scandinavia , Spain use WaterCars made
in France, Italy use SolventCars made in Japan
use solventAsian transplants in North America
use WaterEuropean transplants in North America
use Water
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OEM Adoption of Waterborne Basecoat
0
100
50
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Waterborne Conversion Schedule

• Church Brothers 6 Conversions in 12 months
• CB Castleton 1st store in Dec. 2007
• 1 store a quarter in 2008 with CB Greenwood and
  Shadeland locations converted by Nov. 2008
• 30 Day Transition at each location

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What Did We Have to Change?

• Conversion to Waterborne Basecoat created
  following changes
• Establish Paint Distribution
• New Paint Process SOPs
• Spray Test Panels
• Finer Grit Abrasives
• Material Handling
• Installed Enhanced Air Moving Equipment in Paint
  Booths
• New Training Product Training/Tinting Class at
  Spies Training center in Michigan
• Added Waste Stream/Gun Cleaner
• 1 Solvent/1 Waterborne (non-hazardous)

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Waterborne Drying Process Influential Factors
Relative Humidity
Air Flow
Air Flow
Vapor Barrier
Temperature
Paint Film
Substrate
Film Thickness
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Benefits of staying in the same product family

• Transitioned from Spies Hecker Solvent to Spies
  Hecker Permahyd (Waterborne Basecoat)
• Easiest Transition/ Less to learn
• Only had to learn new techniques and attributes
  of new color coat. Clear coat and primer/
  sealers stayed same.
• Familiar with support and people.
• Product Tried and Tested in Europe for last 10
  years.

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What Did Equipment Cost to Change?

• Church Brothers did 100 of what was recommended
  to insure success
• Air Handling Systems- Garmat - 9,000 per Booth
• Jun-Air Quads-
  13,000 per Booth
• Gun Cleaner- Dual Gun Cleaner 2,500
• Paint Guns- 1,200
• Hoses/ Water Heater/ Fittings/Driers- 1,000
• Total cost of approximately 25,000- 35,000 per
  store depending on type of equipment we chose to
  install at the location.
• Assistance from IDEMs P2 Pollution Prevention
  Grant Cost Share Program

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Ongoing Costs of the Waterborne Change.

• Initially cost increase of . 70 per paint hour,
  but currently increase down to .40 over
  baseline costs.
• Paint toners cost more, but use should use less
• Spray test panels for every job
• Use more straining filters
• Recommended use of Paint Gun Cup Liner and Filter
  System
• (3M PPS cups )
• Gun Cleaning Materials- 2 waste streams

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Benefits of Waterborne Use

• Pros
• Less Pollution- 28 reduction in VOC Emissions
• Generate less hazardous liquid waste
• Safer for Employees- No brain numbing solvent
  smell
• Improved Productivity- less booth time because
  fewer coats of paint are required to cover. 5
  minute dry time.
• Color Match to Waterborne is better
• 10 out of 10 CB Painters prefer waterborne to
  solvent
• Product is very consistent
• Customer Satisfaction Paint Scores are higher
  with waterborne.
• CSI Complete Paint Scores - 98.4 Satisfaction
  since Waterborne Conversion vs. 97.7
  Satisfaction with Solvent

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Negatives of Waterborne Use

• Cons
• Color is extremely sensitive to technique- A
  painter can change a color 10 shades with air
  pressure/ distance and gun control. Must do a
  spray out on every new color. Person Spraying
  should do the spray out.
• Product is temperature sensitive- Must keep color
  in temperature controlled environment.
• Need additional 6 inches of panel to blend from
  12-18 Inches.
• 2 Tone Vehicles Paint 2 times/3 Stage take
  longer to dry base.
• Toners are dirty and need to be strained to a
  greater degree.
• More Tinting-Database of variances is not
  complete. Some solvent colors have 7 variances
  and in water there might be 1 or 2.
• Increased Liquid Costs- Originally costs
  increased .70 per paint hour, but started to
  decline as painters get better acclimated to
  product.

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Management Commitment, Preparation and
Continuous Communication Were Key to Our Success!

• Overall.. Satisfied with Change to Waterborne.
• Timing was right for us to realize some Marketing
  benefit.
• Product is different but performs very well.
• Productivity is improved.
• Materials costs are gradually working closer to
  neutral, and we are still hopeful profitability
  will continue to improve with waterborne.

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Thank You